10 Ways the Greek Government Screwed Their Economy
4. Had no motivation to reduce the deficit
Once inside the Eurozone the Greek government realized that it was much easier now to finance the budget deficit. They were no longer motivated to reduce the deficit and the debt. And why would they when the government IOUs were selling like hot cakes? The problem of the Third World style chronic budget deficit, debt, and devaluation was solved using their partner countries in the Eurozone. Naturally, the government could afford popular measures, something that Third World countries without the raw materials can rarely afford. Before the Eurozone, Greece had a very unstable national currency and a hesitant banking system. After the introduction of the euro the government bonds were in high demand, and the banks were lining up to lend more money to Greek government.
